- Ukrainian Hryvnia underperforms for the third consecutive day
- Euro gains versus the greenback weigh on Hryvnia sentiment
- IMF approves $1.4 billion in financial aid to Ukraine
- ECB interest rate decision in focus
The Ukrainian Hryvnia Euro(UAH/EUR) exchange rate underperformed for the third consecutive day, in line with improved risk appetite. The pair settled -1.37% lower yesterday at 0.0302.
At 11:00 UTC, UAH/EUR trades slightly higher +0.12% at 0.0303.
Euro’s gains versus major counterparts overseas negatively weighted on Ukraine’s currency. However, hopes for short-term capital inflows stabilized the UAH towards the low of the day.
Elsewhere, the International Monetary Fund (IMF) pledges $1.4 billion in emergency funds for Ukraine to help ease the economic impact of the Russia – Ukraine conflict.
“The disbursement under RFI, equivalent to 50 percent of Ukraine’s quota in the IMF, will help meet the urgent balance of payment needs arising from the impacts of the ongoing war and will provide critical support in the short term while playing a catalytic role for financing from other partners,“ – IMF said in a statement.
The IMF financial aid comes on top of $700 million funds received in December 2021 and another $2.7 billion received in August 2021.
Looking forward, the UAH to EUR pair will take its cues from the ECB interest rate announcement immediately followed by President Christine Lagarde’s comments at the ECB Governing Council press conference.